
Translate DSR:

Digital Signage Performance in Retail

There has been considerable debate on whether specific targeted ads for specific audiences mean an increase in sales over traditional broadcasting. The premise that digital signage is built on is that you can target specific customers and display specific advertising. This can all be changed based on the time of day. In the digital signage world, and the marketing world, this is called narrowcasting. Narrowcasting involves streaming specific data to specific audiences as opposed to traditional broadcasting, which targets a great swath of viewers.

Tim Hortons has adopted this marketing program, installing $50 million worth of digital signage in over 2000 of its locations. Now Tim Horton's massive base of 100 million monthly customers becomes a captive audience to whom it hopes to deliver Tims-branded messages to.

Customers walking into the Tim Hortons on Ontario Street in Stratford, Ont., have become a captive audience. While waiting in line for their morning double-double, their eyeballs invariably fix on the overhead high-definition displays where they watch a rolling sequence of images promoting mouthwatering Tims products and exciting in-store specials. The shop is one of 2,000 locations participating in Tim Hortons Inc.'s $50-million rollout of digital displays, part of a nationwide marketing strategy aimed at delivering Tims-branded messages to its 100 million monthly customers. The digital signage networking technology gives Tim Horton's the ability to control and tailor its messages from a remote location and target a specific audience at a specific time of the day (breakfast, lunch, dinner). It creates a company-owned, closed-circuit television network that runs nothing but Tims programming.

"It allows you to run purpose-built, meaningful content that can be managed to meet the consumer experience," said Chris Lund, CEO of retail consultant Perennial Group of Companies Inc. in Toronto Ontario, Canada.

Narrowcasting through use of digital signage has been growing exponentially since becoming mainstream in the advertising world in late 2003. The industry in North America attracted $102.5 million in advertising revenue in 2004, and that number is expected to reach $3.7 billion by 2011. With that being said, there has been a real challenge for firms to come up with the business case to justify the investment in digital signage. When they do decide to go ahead with it, it must be done right. The technology is not cheap, and for digital signage to be successful, it must be done right.

"The roads have been littered with many who have tried and pulled out. The key is in understanding your [ROI] and establishing the right business case before putting it in," says David Clanachan, executive vice-president of training, operation standards and research and development for Tim Hotrons.

U.K.-based Tesco PLC, embarked on a large-scale digital signage project, and had their fingers crossed for big bottom-line results as vendors bought in-store advertising. When their customers complained about intrusive nature of the digital signage, the ad buyers pulled out. Wal-Mart which unveiled a massive digital signage project in 2005, however, report that their digital signage efforts have motivated customers to buy and has increased product recall. Market observers and analysts, however, both agree that in these particular cases, the focus on ads has been too narrow.

"The most successful networks are those with the blended objectives of revenue generation and corporate communications," echoes Stuart Kirkpatrick, CEO of signage firm Digital Display and Communication Inc. in Waterloo, Ont.

When businesses have a better understanding of of the problems and obstacles that they can face with digital signage they can approach the channel with caution. Nick Prigioniero, Chief Executive Officer of EK3 Technologies Inc., a London, Ont.-based engineering media company, notes that each type of business has a different motivation for implementing digital signage. "In food service, it could be increasing sales or just enhancing the overall customer experience. For financial institutions the value might be found in reducing perceived wait times."

Digital Signage Home
Digital Signage Glossary

Digital Signage Equipment

Digital Signage Directory
Digital Signage Articles

Digital Signage Software

Digital Signage Content

Digital Signage
Digital Signage Advertising

legal notice | privacy policy | digital signage advertising | contact us | copyright notice